Debt

Mortgage notes payable are collateralized by the following respective real estate properties and assignment of operating leases as of March 31, 2014 and December 31, 2013 (amounts in thousands):



	Principal Balance as of March 31, 2014			Principal Balance as of December 31, 2013		Stated Rate		Effective Rate⁽¹⁾		Maturity Date⁽²⁾
Mortgage debt collateralized by:
Fixed rate debt
501 Seventh Avenue⁽³⁾	$	39,197		$	—	5.80	%	5.82	%	8/1/2014
(Note 1)⁽³⁾	—			1,037
(Note 2)⁽³⁾	—			31,459
(Note 2)⁽³⁾	—			6,889
1359 Broadway⁽⁴⁾	44,646			—		6.04	%	6.35	%	8/1/2014
(first lien mortgage loan) ⁽⁴⁾	—			9,579
(second lien mortgage loan)⁽⁴⁾	—			5,561
(second lien mortgage loan)⁽⁴⁾	—			11,311
(second lien mortgage loan)⁽⁴⁾	—			18,572
One Grand Central Place
(first lien mortgage loan)	71,153			71,723		5.34	%	6.35	%	11/5/2014
(second lien mortgage loan)	14,804			14,884		7.00	%	8.01	%	11/5/2014
500 Mamaroneck Avenue	32,442			32,620		5.41	%	6.55	%	1/1/2015
250 West 57th Street
(first lien mortgage loan)	25,409			25,621		5.33	%	5.66	%	1/5/2015
(second lien mortgage loan)	11,181			11,252		6.13	%	6.46	%	1/5/2015
Metro Center	95,614			96,158		5.89	%	6.22	%	1/1/2016
10 Union Square	20,887			20,972		6.00	%	6.62	%	5/1/2017
10 Bank Street	33,298			33,444		5.72	%	6.13	%	6/1/2017
1542 Third Avenue	18,913			19,011		5.90	%	6.45	%	6/1/2017
First Stamford Place	244,764			245,629		5.65	%	6.08	%	7/5/2017
1010 Third Avenue and 77 West 55th Street	27,974			28,096		5.69	%	6.31	%	7/5/2017
383 Main Avenue	30,268			30,403		5.59	%	5.94	%	7/5/2017
1333 Broadway	77,429		⁽⁵⁾	78,121		6.32	%	6.54	%	1/5/2018
1350 Broadway (first lien mortgage loan)	42,892		⁽⁶⁾	43,305		5.87	%	6.19	%	4/5/2018
Total fixed rate debt	830,871			835,647
Floating rate debt
501 Seventh Avenue (second lien mortgage loan)	6,540			6,540		⁽⁷⁾		⁽⁷⁾		8/1/2014
1350 Broadway (second lien mortgage loan)	13,752		⁽⁸⁾	13,543		⁽⁹⁾		⁽⁹⁾		10/10/2014
One Grand Central Place (third lien mortgage loan)	6,382			6,382		⁽¹⁰⁾		⁽¹⁰⁾		11/5/2014
250 West 57th Street (third lien mortgage loan)	21,000			21,000		⁽¹¹⁾		⁽¹¹⁾		1/5/2015
Secured revolving credit facility	25,000			25,000		⁽¹²⁾		⁽¹²⁾		10/5/2017
Secured term credit facility	300,000			300,000		⁽¹³⁾		⁽¹³⁾		10/5/2018
Total floating rate debt	372,674			372,465
Total	$	1,203,545		$	1,208,112

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(1)	The effective rate is the yield as of March 31, 2014, including the effects of debt issuance costs.


(2)	Pre-payment is generally allowed for each loan upon payment of a customary pre-payment penalty.


(3)	The loan was consolidated in February 2014.


(4)	The loan was consolidated in February 2014.


(5)	Includes unamortized premium of $7,195.


(6)	Includes unamortized premium of $3,600.


(7)	Floating at 30 day LIBOR plus 2.0%. The rate as of March 31, 2014 was 2.16%.


(8)	Includes unamortized premium of $75.


(9)	Interest at the greater of 4.25% and Prime plus 1%. The rate at March 31, 2014 was 4.25%.


(10)	Interest at the greater of Prime plus 0.50% and 3.75%. The rate as of March 31, 2014 was 3.75%.

(11)

Interest at the greater of 4.25% and prime plus 1%. Prior to January 5, 2015, we have the option to fix the interest rate on all or any portion of the principal then outstanding, up to three times and in minimum increments of $5,000 to an annual rate equal to either (i) the greater of (a) 4.75% or (b) 300 basis points in excess of the weekly average yield on United States Treasury Securities adjusted to a maturity closest to January 5, 2015 as most recently made available by the Federal Reserve Board as of two days prior to the effective date of the fixing of the interest rate, and (ii) the greater of (a) 5.00% or (b) 300 basis points in excess of the weekly average yield on United States Treasury Securities adjusted to a maturity closest to January 5, 2015 as most recently made available by the Federal Reserve Board as of 30 days prior to the effective date of the fixing of the interest rate. If option (i) is selected, we will be subject to the payment of pre‑payment fees, and if option (ii) is selected, we may prepay the loan without any pre‑payment fees. The rate as of March 31, 2014 was 4.25%.


(12)	Floating at 30 day LIBOR plus 1.20%. The rate as of March 31, 2014 was 1.35%.


(13)	Floating at 30 day LIBOR plus 1.35%. The rate at March 31, 2014 was 1.51%.

Principal Payments

Aggregate required principal payments on mortgage notes payable at March 31, 2014 are as follows (amounts in thousands):



2014	$	196,474
2015	90,032
2016	95,614
2017	401,104
2018	420,321
Total principal maturities	$	1,203,545

Given our current liquidity, including availability under our secured revolving credit facility, and the low leverage financing of our 2014 and 2015 balloon maturities, we believe we will be able to refinance those maturities.

Secured Revolving and Term Credit Facility

Our secured revolving and term credit facility has a maximum aggregate original principal amount of up to $800.0 million with an accordion feature to increase the availability to $1.25 billion under certain circumstances. The secured revolving and term credit facility was used to fully repay the existing $500.0 million term loan previously secured by the Empire State Building, which had a balance of $300.0 million. The secured revolving and term credit facility has an outstanding balance of $325.0 million at March 31, 2014.

Amounts outstanding under the term loan bear interest at a floating rate equal to, at our election, (x) a Eurodollar rate, plus a spread ranging from 1.00% to 2.00% depending upon our leverage ratio and credit rating which, at December 31, 2013, was 1.35%; or (y) a base rate, plus a spread ranging from 0.00% to 1.00% depending upon our leverage ratio and credit rating which, at March 31, 2014, was 0.35%. Amounts outstanding under the revolving credit facility bear interest at a floating rate equal to, at our election, (x) a Eurodollar rate, plus a spread ranging from 0.925% to 1.70% depending upon our leverage ratio and credit rating which, at March 31, 2014, was 1.20%; or (y) a base rate, plus a spread ranging from 0.00% to 0.70% depending upon our leverage ratio and credit rating which, at March 31, 2014, was 0.20%. In addition, the revolving credit facility permits us to borrow at competitive bid rates determined in accordance with the procedures described in the revolving credit facility.

The term loan has a term of five years and the revolving credit facility has an initial term of four years. We have the option to extend the initial term of the revolving credit facility for an additional one-year period, subject to certain conditions, including the payment of an extension fee equal to 0.20% of the then-outstanding commitments under the revolving credit facility. The secured revolving and term credit facility also includes an unused facility fee of 0.20%. In addition, the secured revolving and term credit facility includes covenants which may restrict our ability to pay dividends if we fail to meet certain tests.

As of March 31, 2014, availability under the secured revolving and term credit facility is reduced by $30.7 million until certain capital expenditures at the Empire State Building are made by us from proceeds from the secured revolving and term credit facility or cash on hand.